Warsh seeks to keep Fed steady amid Iran price pressures, internal divides
Most economists expect policymakers to keep rates unchanged as inflation stays above the Fed’s 2% target and energy prices rise, traders said.
- On Wednesday, Fed Chair Kevin Warsh reaffirmed the 2% inflation target after the Federal Open Market Committee decided to leave interest rates steady.
- Warsh attributed persistent inflation to "economic shocks," citing President Donald Trump's tariffs and the Iran war as ongoing drivers of elevated price pressures.
- Long-Term bond yields surged during his remarks, with the 30-year US Treasury yield jumping to 5.21% and the 10-year yield reaching almost 4.69%.
- The Dow Jones Industrial Average fell more than 1,100 points for its worst day in over a year as traders reassessed rate-hike expectations.
- CME FedWatch data shows traders pricing in a 57% chance of a September rate hike, though analyst Kathy Bostjancic argues the Fed should remain on hold this year.
173 Articles
173 Articles
(New York = Yonhap News) Correspondent Kim Yeon-sook = U.S. Federal Reserve Chairman Kevin Warsh [on the 29th (local time)] a 'magic wand' to solve inflation at once (...
Fed Holds Rates Steady in Trump-Backed Warsh's Second Meeting
The Federal Reserve on Wednesday opted to keep interest rates steady, despite the installation of Kevin Warsh as Fed chairman, the Wall Street Journal reported. Trump had appointed Warsh to replace Powell, whom he repeatedly criticized for his hesitance to lower interest rates.
Wall Street is panicking over Kevin Warsh's patience
Kevin Warsh, in his second press conference as Fed chairman, gave the bond market credit for doing his tightening for him. Within the hour, it went further, and made clear what it thought of his decision not to raise rates. The 30-year treasury yield surged 10 basis points to 5.21%, its highest level in 19 years, while the 10-year—important for the mortgage market—climbed seven basis points, to 4.67%. However, the 2-year actually fell four basis…
New Fed chair's first major interest-rate decision doesn't rock the boat — and Trump may not be happy about it
The first major decision at the Federal Reserve under new Chairman Kevin Warsh has come and gone, but little has changed.On Wednesday, the Fed announced that the interest rate would hold at between 3.5% and 3.75%, despite calls from Dallas Fed President Lorie Logan and others for a "modest" increase.'We will deliver price stability.'The decision was released at 2 p.m. ET, revealing that Warsh and eight other committee members had voted in favor …
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